Home Buying in Albion>Question Details

Dan Hardman, Home Buyer in Albion, IN

we recently bid on a house in our area(foreclosed) and received a counter offer from seller(bank),which we accepted.

Asked by Dan Hardman, Albion, IN Wed May 30, 2012

They asked us to get a cashiers check (title company)for the earnest money and proof from the bank that we had the funds(cash) available,which we did.The following day,the listing agent informed us they were now accepting multiable offers and wanted to know if we wanted to bid higher????Is this legal???

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Answers

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Did the bank state they had additional documents that needed to be satisfied? Was the contract completed and signed by all parties (including the bank). Techinically, all documents must be completed, as well as earnest money check delivered to the listing agent and/or title company. If all documents (including bank addendums) were satisfied and you were providing them the earnest money check within the timelines stated in the agreement, then the seller (bank) shouldn't be accepting multiple offers. It's hard to answer your question without seeing your agreements but this doesn't sound right. Not to be redundant, the main questions you need to ask yourself, 1. is the contract completed by all parties? 2. are there any additional documents that needed to be completed by all parties (to complete the purchase agreement) 3. Did you submit your cashiers check to the title company within the specified time frame as stated in the agreement 4. Did you provide proof of funds to the listing agent within the timelines specified If all these items were addressed as stated, then I would contact a real estate attorney, as well as the broker owner of your agents firm, to contest your case with the listing agent and bank. I wish you luck and I hope everything works out for you on the purchase of this home.

Mallorie Wilson
Associate Broker
Century 21 Diversified
malloriewilson.com
317-590-3434 direct
0 votes Thank Flag Link Wed May 30, 2012
Mutliple offers are a realty this Spring in many markets. I can tell you that I've encountered the same thing here in NJ - the best properties....well priced, good to great condition and in desirable communities and in popular price points, are moving fast and many time attracting multiple bids. The question is whether you are technically "under contract" and that is a question for your attorney to answer. Here in NJ we have a period called Attorney Review when docs are reviewed by both attorneys. Only after that process is completed is the deal considered "under contract". And until then, either party can cancel the deal without recourse to the other.

Your question is really a contractual one, and only an attorney can give you a final answer. But it sounds to me as though you are bidding on a hot house and if there is multiple interested parties, the bank will want to take advantage of that to lessen its losses. Your goal on this property or any other of interest is to get yourself firmly under contract as soon as possible so that this doesn't happen again. Once under contract, the seller is likely only able to entertain back up offers, and you should be secure unless you don't meet your obligations in the contract.

Good luck to you!
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Wed May 30, 2012
Of course it's legal. Why wouldn't it be?

Your agent can advise you further. (You do have your own agent, don't you?)
0 votes Thank Flag Link Wed May 30, 2012
Your response is the opposite of helpful. You provided no explanation and managed to belittle the person asking the question in two of the four sentences with which you responded. I hope you don't speak to your clients this way.
Flag Sat Jul 5, 2014
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Legal? Yes, why would you think it is not? Was the counter offer signed or verbal? Verbal means nothing and unless it is signed they can continue to accept offers. Once a seller gets multiple offers they often ask for everyone's highest and best offer, but I bet there is nothing signed by the bank saying they accepted the offer. Good luck, bank owned homes and short sales can (are) pains to deal with.
0 votes Thank Flag Link Wed May 30, 2012
Dan:

Sorry for your troubles. It's typical in a bank-owned situation that two things are true.

1. The bank reserves the right (usually stated in their bank-owned property addendum) to withdraw their acceptance of any offer and take a different, better offer.

2. The deal isn't intact until you and the bank have signed all documents and the earnest money has been received by the Listing Broker or bank.

I'd encourage you to communicate with your agent to discover where in the process your offer was derailed, and the re-consider your options.

Good luck!

Joe Shoemaker
Principal Broker, REALTOR®
MacDuff Realty Group, LLC
317 413.8501
joe@joeshoe.com
http://www.facebook.com/joeshoe
http://twitter.com/#!/jojosmojo
http://www.macduffrealty.com
0 votes Thank Flag Link Wed May 30, 2012
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